Place and Distribution

Getting it to the customer

A brilliant product is no use if customers cannot get hold of it. Place is the fourth P of the marketing mix: getting the product to the customer at the right place and time. This module looks at the distribution channels a product travels through, and the difference between selling through physical shops and selling online.

The key words

Four terms describe how products reach customers:

Retailer or e-tailer?

A business can sell through a physical shop, online, or both.

Match each part of the chain

What is an e-tailer?

Which best describes an e-tailer?

• A business that sells its products online
• A physical high-street shop
• A company that buys goods in bulk to sell on
• A factory that makes the goods

Why sell online?

Select the TWO advantages of selling online through e-commerce.

• It can reach customers almost anywhere
• It is open 24 hours a day
• Customers can physically try the product first
• It needs no delivery at all

The distribution channel

A distribution channel is the path a product takes from the producer to the consumer. Common channels are: producer to consumer (direct); producer to retailer to consumer; and producer to wholesaler to retailer to consumer. A longer channel has more middlemen, but can get the product into far more shops.

Distribution in words

The fourth P of the marketing mix is _____: getting the product to the customer. The path a product takes from producer to customer is called a distribution _____. A physical shop that sells to customers is a _____, while a business that sells online is an _____. A wholesaler buys goods in _____ and sells them on to retailers.

From producer to consumer

Put this distribution channel in order, from where the product is made to who buys it.

• The producer makes the product
• A wholesaler buys it in bulk
• A retailer buys smaller amounts from the wholesaler
• The consumer buys it from the retailer

Spot the online selling

Tap the TWO statements that are features of selling online through e-commerce.

• It is open 24 hours a day
• Customers can hold the product before buying
• It can reach customers across the world
• It needs a physical high-street shop
• Staff greet each customer in person

Choose the channel

Recommend the best way for each business to distribute its product.

• A small craft maker wants to sell to customers with no shops in between. Which channel suits them?
• A large drinks producer wants its product in thousands of small shops. Which is most useful?
• A new business wants to reach customers worldwide cheaply, without renting any shops. What should it use?

Recommend a channel

A new business makes handmade candles and wants to sell them across the country on a small budget. Recommend a distribution method and justify your choice. Write in clear, full sentences.

• Recommend a distribution method for the candle business
• Explain how it helps reach customers across the country
• Explain why it suits a small budget
• Mention one drawback the business would need to manage